Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Funding a program as capital and operating are two different financial approaches, each with its own implications. Capital Funding: This refers to the money invested

Funding a program as capital and operating are two different financial approaches, each with its own implications. Capital Funding: This refers to the money invested for long-term use in a program. It is typically used for acquiring assets, such as buildings, machinery, or equipment, which will be used over a long period of time. These assets are expected to generate value for the program over their useful life. The cost of these assets is not fully expensed in the year of purchase but is depreciated or amortized over the expected life of the asset.Operating Funding: This refers to the money used for day-to-day operations of a program. These are the costs that are incurred regularly and are necessary for the program's functioning. Examples include salaries, rent, utilities, and supplies. These costs are fully expensed in the year they are incurred. Can you help me rewrite in simpler way:

Step by Step Solution

3.40 Rating (147 Votes )

There are 3 Steps involved in it

Step: 1

Heres a simpler way to explain the difference between capital fundin... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

1292016922, 978-1292016924

More Books

Students also viewed these Accounting questions